Shares in China’s three large telecom carriers were roiled Monday, after the New York Stock Exchange moved to delist the trio to comply with a U.S. government ban.
Hong Kong-listed shares in all three dipped sharply in the first trading session since the NYSE move was announced, before reversing course later in the day. Stock in the largest, China Mobile Ltd. , dropped as much as 4.5% before paring losses to close 0.8% lower. Its closing price was still the lowest since June 2006. Competitor China Telecom Corp. closed 2.8% lower, while China Unicom , the smallest of the three, eked out a 0.5% gain.
Jefferies analyst Edison Lee said non-U.S. investors—who wouldn’t be covered by the ban—are “bottom-fishing.” Mr. Lee said the business fundamentals of the three firms had been improving, and China Mobile’s share price implied a high dividend yield of about 7.5%.by Jan. 11, while halting trading in closed-end funds and exchange-traded products that hold banned stocks.
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